NEW DELHI: The price of gold rose more than 1% as Finance Minister Nirmala Sitharaman announced that the basic customs duty on articles and items made from gold bars will be hiked in the Union Budget 2023.
The Finance Minister also announced that conversion of gold into e-gold would not be liable for any capital gains.
Customs Duties on dore and bars of gold and platinum were increased earlier this fiscal. "I now propose to increase the duties on articles made therefrom to enhance the duty differential. I also propose to increase the import duty on silver dore, bars and articles to align them with that on gold and platinum," said Sitharaman.
"The move to not impose any capital gains on the conversion of physical gold to electronic gold receipts and vice versa will help further gold monetization. This announcement may help in reducing the import of gold," said Colin Shah, MD, Kama Jewelry.
The hike in basic customs duty on articles made from gold bars and import duty on silver will lead to a rise in the final price of locally made jewelry.
There was no announcement for the natural diamond industry in terms of duties and our SNZ’s.
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